Is a Paypal receipt & seller's VAT number sufficient to claim back VAT?

[diviachi]

My Ltd business has started buying hard-to-find items from eBay, mostly low value purchases (<£50). We are VAT registered and buying from a mix of VAT registered and non-VAT registered businesses. Not all of the sellers provide a receipt with the orders, and I usually get ignored when I email and ask them for one. This isn't a problem for the non-VAT registered sellers, I just print off a Paypal receipt which our accountant says is sufficient evidence.

However, it's annoying when I can't get a receipt from a VAT registered seller, since I can't reclaim the input tax and I waste a lot of time chasing them. Would writing the seller's address details and VAT number from the eBay listing on the Paypal receipt be enough to be able to reclaim the input tax, or is there a way of printing off a VAT receipt from eBay itself?

 

[andygambles]

If the purchase is below £250 then as long as the receipt contains a VAT number and a description of goods you can claim back the VAT. You do not need a full breakdown.

If there is no VAT number on the receipt then I am not sure how you can know if the company is VAT registered.

 

[diviachi]

Hi Andy, thanks for the reply. The Paypal receipts don't have the VAT numbers on them, but the seller's VAT numbers are included in their business info in the eBay listings. A lot of the listings even specifically say that VAT is included but getting a proper receipt is often like getting blood out of a stone. I'm just trying to find out if HMRC would accept the Paypal receipt as a VAT receipt if I handwrite the VAT details onto them?

 

[MrAnchovy]

No, a Simplified VAT Invoice must show all of the following:

• the seller's name and address
• the seller's VAT registration number
• the time of supply (tax point)
• a description of the goods or services

I also trade with VAT registered sellers on ebay, their ebay order confirmations all include their VAT number: this is very easy for the trader to set up and the fact that they haven't is not reassuring.

 

[MrAnchovy]

I'm just trying to find out if HMRC would accept the Paypal receipt as a VAT receipt if I handwrite the VAT details onto them?

No, whatever document you are using as evidence of Input Tax must be issued by the supplier (except under a Self Billing agreement, the EU Reverse Charge procedure etc.)

 

[andygambles]

If they won't issue one all you can do is report them to HMRC and leave negative eBay Feedback